Annual Report 2014 | Suomeksi |

Financial results

Sales by segment
EUR million 2014 2013 Change
14/13
Power and Technology 2,156 2,252 ‑4%
Heat, Electricity Sales and Solutions 1,332 1,516 ‑12%
Russia 1,055 1,119 ‑6%
Distribution 751 1,064 ‑29%
Other 58 63 ‑8%
Netting of Nord Pool transactions 1) ‑422 ‑478 ‑12%
Eliminations ‑179 ‑228 ‑21%
Total 4,751 5,309 ‑11%
Comparable operating profit by segment
EUR million 2014 2013 Change
14/13
Power and Technology 877 859 2%
Heat, Electricity Sales and Solutions 104 109 ‑5%
Russia 161 156 3%
Distribution 266 332 ‑20%
Other ‑57 ‑54 6%
Total 1,351 1,403 ‑4%
Operating profit by segment
EUR million 2014 2013 Change
14/13
Power and Technology 855 922 ‑7%
Heat, Electricity Sales and Solutions 337 134 151%
Russia 161 156 3%
Distribution 2,132 349 511%
Other ‑58 ‑53 9%
Total 3,428 1,508 127%
1) Sales and purchases with Nord Pool Spot are netted at the Group level on an hourly basis and posted either as revenue or cost depending on whether Fortum is a net seller or net buyer during any particular hour.
For further information, see Note 5 Segment reporting.

In 2014, Group sales were EUR 4,751 million (2013: 5,309). Comparable operating profit totalled EUR 1,351 million (2013: 1,403), and the reported operating profit totalled EUR 3,428 million (2013: 1,508). Fortum's operating profit for the period was affected by non-recurring items, mainly the divestment of the Finnish electricity distribution business, as well as an IFRS accounting treatment (IAS 39) of derivatives, mainly used for hedging Fortum's power production, and nuclear fund adjustments amounting to EUR 2,077 million (2013: 106).

The share of profit from associates in 2014 was EUR 149 million (2013: 178), of which Fortum Värme represents EUR 67 million (2013: 73). The share of profit from Hafslund and TGC-1 are based on the companies' published third-quarter 2014 interim reports.

The Group’s net financial expenses were EUR 217 million (2013: 289). Net financial expenses include changes in the fair value of financial instruments of EUR -5 million

(2013: -16).

Profit before taxes was EUR 3,360 million (2013: 1,398).

Taxes for the period totalled EUR 199 million (2013: 186). The tax rate according to the income statement was 5.9% (2013: 13.3%). In Finland, the corporate tax rate was decreased from 24.5% to 20.0% starting 1 January 2014; the decrease impacted approximately EUR 0.09 per share the fourth quarter of 2013. In 2014, the tax rate, excluding the impact of the share of profit from associated companies and joint ventures as well as non-taxable capital gains, was 18.8% (2013: 22.7%).

The profit for the period was EUR 3,161 million (2013. 1,212). Fortum's earnings per share were EUR 3.55 (2013: 1.36), of which EUR 2.36 (2013: 0.10) per share relates to items affecting comparability. The earnings per share impact from the divestment of the Finnish electricity distribution business was EUR 2.08 per share.

Operating profit and comparable
operating profit, EUR million
Profit before taxes, EUR million
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